VA Contractors: VA Advanced (Class A)
Exam Questions and Correct Answers
Question 1
What is the total gross compensation and employment status for a carpenter, given
the following information? A contractor hires a carpenter to do the finish work for a
10-home project. The carpenter is to be paid $16 per hour. The contractor provides all
materials and equipment, such as a table saw. The carpenter provides all of his own
hand tools. The contractor and the carpenter agree that all of the homes are to be
completed within 60 8-hour working days, without overtime. The contractor provides
the carpenter with a schedule of the order in which homes are to be worked on. The
contractor provides a helper to assist the carpenter. The contractor sets the work
schedule each day. The carpenter spends 600 hours to complete this project,
including 120 hours of overtime.
Correct Answer
The carpenter is an employee and is owed $10,560 for the project
Question 2
A lump sum contract on a project has a total contract price of $160,000. Retainage
has been held back at 10%. The contractor has received progress payments for 75%
of the project. The contractor submits a request for final payment for the new
completed project. The final payment amount should be for...
Correct Answer
More than $50,000
Question 3
What would be the total amount of Medicare and Social Security taxes that the
employer should withhold on the last week of the year from an employee who earns
$3,000 per week and has worked for the employer the entire year?
Correct Answer
$43.50
Page 1 of 69
,Question 4
What is the total project overhead for a project that lasts 3 months and has the
following costs? Labor is $4,000; materials are $9,500; equipment rentals are $1,200;
superintendent's annual salary is $36,000; office rent is $800 per month; and office
utilities are $375 per month.
Correct Answer
Less than $12,000
Question 5
Which of the following would typically be covered by a contractor's comprehensive
general liability insurance policy?
Correct Answer
Damage to adjoining property from a crane accident
Question 6
For 1 month a company bills out $38,000 in completed work, and receives $22,000 in
payments plus $8,000 from the previous month's billings. They pay their total bill of
$26,000 to supply houses for this month's purchases, and another $5,000 to supply
houses for last month's purchases. Using a cash accounting method and NOT
considering any other revenue or expenses, what is the company's net income for the
month?
Correct Answer
Loss of $1,000
Question 7
A cost plus contract calls for the contractor to receive direct costs for labor and
materials, and a markup of 20% of direct costs. The contractor is also to receive a
bound of 15% of savings if total cost to the owner is less than $80,000, and a bonus
of $1,000 per day if the project is completed early. Final costs for direct labor and
materials are $60,000. The project is completed 3 days early. What is the total amount
due to the contractor?
Correct Answer
Between $75,001 and $80,000
Page 2 of 69
,Question 8
The owner requests for change which will cost the contractor $15,000 in labor and
materials and $2,250 in overhead costs. With the change, the contractor would be
relieved of $18,000 in labor and materials costs, and $2,400 in overhead costs from
the original contract. The original bid included profit of 20% of all costs. The
contractor wants to make a profit of 20% of all costs on the changes. The adjusted
contract price for the change order should be...
Correct Answer
A decrease of $3,780
Question 9
How much is an employer who withheld employee Medicare and Social Security taxes
or $765 required to send to the IRS?
Correct Answer
$1,530
Question 10
What is the MAXIMUM amount of a lien that can claimed by a subcontractor who
notifies the lien agent for a two-family residential property on August 1 that the
subcontractor first provided labor and materials on the project on May 1? The
subcontractor billed the general contractor for $4,000 per month, through September
30, and was never paid.
Correct Answer
$8,000
Question 11
An insurer offers the contractor a 20% per year reduction in premiums if the
contractor has a defied safety program in place. The insurer's standard rates are $8
per $1,000 of coverage. The contractor has $300,000 in coverage. How much in
premiums will the contractor save a 3-year period by having a defined safety program
in place?
Correct Answer
Between $1,001 and $1,500
Page 3 of 69
, Question 12
What percent should the employer withhold for Virginia withholding for an employee
who is to receive a separate supplemental payment for vacation? The employer is
using a flat percentage rate.
Correct Answer
5.75%
Question 13
A contractor puts in a claim under a comprehensive standard general liability policy.
The policy has no additional coverage, riders, or floaters, and has a $500 deductible
per occurrence. The claim is for a job-site accident that caused $2,000 of injuries to
employees, $1,800 of injuries to a pedestrian, $2,300 damage to the contractor's
equipment, and $1,750 loss of project materials purchased by the contractor. The
insurance company is liable for...
Correct Answer
$1,300
Question 14
How much state income tax MUST be paid by a corporation that has $30,000 of
Federal taxable income? The company deducted $2,000 of state and local taxes on
the Federal return, and had $2,000 of qualified worker retraining expenses. The
corporation does business ONLY in Virginia.
Correct Answer
$1,080
Question 15
In the previous year, a company had revenues of $500,000 project overhead of
$40,000 and company overhead of $75,000. The company expects the percentage for
project and company overhead to remain the same for the current year. The company
desires to make a 10% profit on a project it is bidding. The project would have
$80,000 in direct costs. What should the bid price be?
Correct Answer
Between $110,000 and $120,000
Page 4 of 69
Exam Questions and Correct Answers
Question 1
What is the total gross compensation and employment status for a carpenter, given
the following information? A contractor hires a carpenter to do the finish work for a
10-home project. The carpenter is to be paid $16 per hour. The contractor provides all
materials and equipment, such as a table saw. The carpenter provides all of his own
hand tools. The contractor and the carpenter agree that all of the homes are to be
completed within 60 8-hour working days, without overtime. The contractor provides
the carpenter with a schedule of the order in which homes are to be worked on. The
contractor provides a helper to assist the carpenter. The contractor sets the work
schedule each day. The carpenter spends 600 hours to complete this project,
including 120 hours of overtime.
Correct Answer
The carpenter is an employee and is owed $10,560 for the project
Question 2
A lump sum contract on a project has a total contract price of $160,000. Retainage
has been held back at 10%. The contractor has received progress payments for 75%
of the project. The contractor submits a request for final payment for the new
completed project. The final payment amount should be for...
Correct Answer
More than $50,000
Question 3
What would be the total amount of Medicare and Social Security taxes that the
employer should withhold on the last week of the year from an employee who earns
$3,000 per week and has worked for the employer the entire year?
Correct Answer
$43.50
Page 1 of 69
,Question 4
What is the total project overhead for a project that lasts 3 months and has the
following costs? Labor is $4,000; materials are $9,500; equipment rentals are $1,200;
superintendent's annual salary is $36,000; office rent is $800 per month; and office
utilities are $375 per month.
Correct Answer
Less than $12,000
Question 5
Which of the following would typically be covered by a contractor's comprehensive
general liability insurance policy?
Correct Answer
Damage to adjoining property from a crane accident
Question 6
For 1 month a company bills out $38,000 in completed work, and receives $22,000 in
payments plus $8,000 from the previous month's billings. They pay their total bill of
$26,000 to supply houses for this month's purchases, and another $5,000 to supply
houses for last month's purchases. Using a cash accounting method and NOT
considering any other revenue or expenses, what is the company's net income for the
month?
Correct Answer
Loss of $1,000
Question 7
A cost plus contract calls for the contractor to receive direct costs for labor and
materials, and a markup of 20% of direct costs. The contractor is also to receive a
bound of 15% of savings if total cost to the owner is less than $80,000, and a bonus
of $1,000 per day if the project is completed early. Final costs for direct labor and
materials are $60,000. The project is completed 3 days early. What is the total amount
due to the contractor?
Correct Answer
Between $75,001 and $80,000
Page 2 of 69
,Question 8
The owner requests for change which will cost the contractor $15,000 in labor and
materials and $2,250 in overhead costs. With the change, the contractor would be
relieved of $18,000 in labor and materials costs, and $2,400 in overhead costs from
the original contract. The original bid included profit of 20% of all costs. The
contractor wants to make a profit of 20% of all costs on the changes. The adjusted
contract price for the change order should be...
Correct Answer
A decrease of $3,780
Question 9
How much is an employer who withheld employee Medicare and Social Security taxes
or $765 required to send to the IRS?
Correct Answer
$1,530
Question 10
What is the MAXIMUM amount of a lien that can claimed by a subcontractor who
notifies the lien agent for a two-family residential property on August 1 that the
subcontractor first provided labor and materials on the project on May 1? The
subcontractor billed the general contractor for $4,000 per month, through September
30, and was never paid.
Correct Answer
$8,000
Question 11
An insurer offers the contractor a 20% per year reduction in premiums if the
contractor has a defied safety program in place. The insurer's standard rates are $8
per $1,000 of coverage. The contractor has $300,000 in coverage. How much in
premiums will the contractor save a 3-year period by having a defined safety program
in place?
Correct Answer
Between $1,001 and $1,500
Page 3 of 69
, Question 12
What percent should the employer withhold for Virginia withholding for an employee
who is to receive a separate supplemental payment for vacation? The employer is
using a flat percentage rate.
Correct Answer
5.75%
Question 13
A contractor puts in a claim under a comprehensive standard general liability policy.
The policy has no additional coverage, riders, or floaters, and has a $500 deductible
per occurrence. The claim is for a job-site accident that caused $2,000 of injuries to
employees, $1,800 of injuries to a pedestrian, $2,300 damage to the contractor's
equipment, and $1,750 loss of project materials purchased by the contractor. The
insurance company is liable for...
Correct Answer
$1,300
Question 14
How much state income tax MUST be paid by a corporation that has $30,000 of
Federal taxable income? The company deducted $2,000 of state and local taxes on
the Federal return, and had $2,000 of qualified worker retraining expenses. The
corporation does business ONLY in Virginia.
Correct Answer
$1,080
Question 15
In the previous year, a company had revenues of $500,000 project overhead of
$40,000 and company overhead of $75,000. The company expects the percentage for
project and company overhead to remain the same for the current year. The company
desires to make a 10% profit on a project it is bidding. The project would have
$80,000 in direct costs. What should the bid price be?
Correct Answer
Between $110,000 and $120,000
Page 4 of 69
